Eureka weekly sentinel. [volume] (Eureka, Nev.) 1887-1902, 1887-10-15
0deeklp Ssmmfl,
PUBLISHED EVERY SATURDAY BY
CASSIDY & SKILLMAN.
UsrNu THE

USING THE SURPLUS.
The San Francisco Bulletin says: III
the 800. 900, 900 surplus of the United
States Government were obtained by
laws that bore hardly upon any industry,
there would be SOM force in the demand
for a reduction of the revenue. Al
though we have a bonded debt OF about
81, 100, 900, 900, there is no absolute ne
cessity that payments on accounts DC
made. The Sinking Fund Act makes
certain provisions for the payment OF
such bonds at maturity, but If the Gov
eminent were in need Of all its revenue
the bonds might wait maturity. But the
Government has 800, 900, Oo0s year yer
and above its ordinary expenditures
flows into the Treasury through the
operation of laws that have Tor a
long time been in existence. Ihey
work no especial injury to any industry
The only home products that are SUD-
iected to Federal taxation are spirits
and tobacco. The portion of the rev'
enue derived from the tax on foreign
made articles is obtained without neon
y~enience, Our industries are rather
benefited than otherwise by the tax laid
on foreign made goods. There is, then,
no urgent reason why the surplus should
be reduced. There is the debt OF
81, 100, 900, 900 that may be paid as fast
as the surplus ~accumulates. 1t IS true
that these bonds command a premium,
but the premium is much less than the
interest that will accrue if the bonds are
not paid. For example, a $1,000 bond
due in 1907 will call for $500 in prin-
cipal and interest. The bond now can
be bought in the market for Sl,26O. If
the Treasury buys the bond at current
rates it saves $40 on each $1,000 bond.
We are speaking now Of the use of a
surplus that comes easily and naturally
into the Treasury, not Of creating a
revenue to pay a debt in advance of ma
turity. At the present time the United
States is prosperous, and prosperity
brings the surplus. But there is no GER
tainty that this condition will continue.
We may eventually be involved in diff.
ficulties which will require us to in.
crease our debt. We may have our
troubles which will reduce our surplus
without legislation for that purpose. 1t
is, therefore, only an act Of ordinary
prudence to use our revenues in times OF
prosperity to pay off the debts incurred
in the past and to provide such security
as we can for the future. II the United
States should be involved in a war
within the next ten years the most prob
able cause will be that we are UMPIRE.
pared for war. Our apparent inability
to defend our rich seaport cities may
induce some European power to enter
upon a policy it would not think Of if
we had a navy in proportion to our rank
as a military power. The cost of even
a Whit of war would in one way and
another exceed the cost of a navy The
sum of ten million dollars a year ex.
tended over a term of years would give
us a pretty fair navy, but the total would
be but a trife compared to the loss to
general business Of a war scare. There
should be several millions expended in
coast and harbor Notifications. We
also require a considerable expenditure
for ordnance. The time to do these
things is when we have money. The
money so expended is distributed among
the people, and We have the sense of
security which from being pre-.
pared. The Congress now soon to meet
will be urged to reduce the revenue.
Possibly a few millions may be cut off
in one way or another; but, in view of
the fact that our revenue comes easily
and naturally, the wisest thing Congress
can do is to provide for the payment of
our present debt and to put the country
IN a complete state of defense.